Hyundai Steel Q2 net drops 13 pct on lower prices

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SEOUL, July 28 (Yonhap) -- Hyundai Steel Co., South Korea's No. 2 steelmaker,
said Tuesday its second-quarter earnings sank 13 percent from a year earlier due
to lower steel prices.
Net profit reached 283 billion won (US$228 million) in the April-June period,
compared with a profit of 325 billion won a year earlier, the company said in a
regulatory filing.
Sales also plummeted 34 percent to 1.95 trillion won, and operating income
plunged 70 percent to 135 billion won.
Shares of Hyundai Steel closed at 63,900 won on the Seoul bourse, up 0.63
percent. The second-quarter earnings were released after the market closed.
The steelmaker said it is unclear whether the economy will rebound in the second
half, but that its cost-saving measures and government spending will help improve
its earnings down the road.
"The market conditions may improve down the road on the back of increasing demand
from the public sector and seasonal demand for steel," the company said in a
statement.
Steel demand is showing signs of reviving as the government is spending big to
buttress Asia's fourth-largest economy. Earlier this month, Hyundai Steel's
domestic rival POSCO said it would raise its production this year to meet rising
demand.
Hyundai Steel said it expects sales to reach 7.96 trillion won for the full year,
and its crude steel production may reach 9.42 million tons this year.
Last week, the company said it plans to spend 2.36 trillion won in upgrading its
facilities and building a new blast furnace this year, 11 percent more than it
earlier planned.
sam@yna.co.kr
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